Debt collection letter

System

This discussion was created from comments split from: DMP mutual support thread part 13 !!.

Bettyb28

I was wondering if somebody could advise me. I have stopped all payments to lenders as I am struggling financially and I was waiting to receive a default notice. However I have just received an email to say that my debt has been passed to a debt collection agency and if I don’t respond within 48 hours they will visit me. What does this mean? Do I contact the lender and set up a payment plan or wait for the default notice? What will they do if they come to my home? 

Any advice would be greatly appreciated as this email has made me very anxious. 

EssexHebridean

Sounds like scare tactics to me - which agency is it? 

fatbelly

A visit sounds unlikely - they would have to right to do anything so it would be a waste of time.

Defaults should be issued after 3-6 months of missed payments - how many have you missed?

MalMonroe

Bettyb28 said:

I was wondering if somebody could advise me. I have stopped all payments to lenders as I am struggling financially and I was waiting to receive a default notice. However I have just received an email to say that my debt has been passed to a debt collection agency and if I don’t respond within 48 hours they will visit me. What does this mean? Do I contact the lender and set up a payment plan or wait for the default notice? What will they do if they come to my home? 

Any advice would be greatly appreciated as this email has made me very anxious. 

If somebody comes to your home, you do not have to open the door, speak to them or let them in. But they can't do that, surely? 

Have you thought of contacting one of the free debt help agencies? Stepchange or National debtline or Citizens Advice? Details below -

https://nationaldebtline.org/contact-us/

https://www.stepchange.org/contact-us.aspx

https://www.citizensadvice.org.uk/

Any one of those can help you to sort out your debts and money management. I used Stepchange in 2013 and they really helped me to get myself sorted out and to get things turned around. 

There's also this info from National debt line that might be helpful  -

https://www.nationaldebtline.org/fact-sheet-library/refused-offers-ew/

peteuk

In my opinion stopping and waiting isn't the best solution. Sorry.  My advice is 

Do you owe money to your bank eg Overdrafts or loans - if so open a new account in a different bank and get all monies paid into those. 

Contact a FREE debt advice organisation (Step change) they will work out an SOA and how much spare you have to pay your debts.  They can, if you wish contact your lenders with a proportionate payment suggestion.   It is then up to the lender to accept or refuse. 

I always like to think that speaking to lenders is the best way.  Depending on who they are, depends on how they react.  Whilst working out your payments can you make token payments?.  Some debts will default others wont so you could be waiting 6 months for a default.   In the mean time interest will be added.  If you speak to them they may be nice and freeze interest for a short period.

I know its difficult and those types of calls are more than scary, so take you time.  Create a list and go through them one at a time.  Write down what you want to say, so you know and to keep you on track. 

The big thing is you've realised there's a problem and your doing something about it.  So well done!  My advice is just that advice.  Having been on two separate Debt Management Plans (Obviously didn't learn the first time) in 1999 (short period) and then 2005 (for 10 years) we are 16 years later looking at finally being 100% debt free (not counting mortgage).  Its not an easy road, hence the likes of step change et al can help, not only set up and review a DMP but also support you. 

Good luck!